Technically, the 4-hour chart indicators extended moves in the bullish territory and remain elevated.
Ether Price Biased Higher Above Daily Cloud
Yesterday, we saw how there was a crucial resistance formed near $11.35-11.40 in Ether price versus the US Dollar. The price was seen struggling to overcome the mentioned resistance.
However, the market sentiment was boosted overnight, as the ETH/USD pair spiked higher and broke the $11.40 resistance to set the pace for the next ride.
The upside move was such that the price also traded above the $11.60 resistance, and cleared January’s swing high of $11.87. The price even broke past the $12.00 handle, and posted a new monthly high as $12.15.
At the moment, it looks like the price is consolidating gains above the $12.00 level and might be preparing for further gains. Should a correction wave materialize, an initial support can be around the 23.6% Fibonacci retracement level of the last wave from the $11.20 low to $12.15 high.
In my view, a 4-hour close above the $12.00 level is needed for the price to extend gains. No doubt, there is a clear break of a bearish trend line on the chart at $11.40, which is a bullish sign.
However, a daily close above $12.00 won’t be easy. If there is a close, the next stop for ETH/USD could be near $12.80.
On the downside, below $11.87, the most important support would be $11.50-11.40. It was a resistance earlier, and now most likely to act as a strong support.